PenCom Proposes Enhanced Pension Package For Police Personnel

In a bid to boost the quality of life of police retirees, the National Pension Commission (PENCOM) is seeking to enhance retirement benefits of Nigerian Police Officers under the contributory pension scheme.

The commission said the move is meant to find a lasting solution to the incessant agitation to exit contributory pension scheme over low pension by Nigerian police retirees.

Under the approved framework, according to the PenCom director general, Omolola Oloworaran,
retired police officers will receive a monthly pension equivalent to 100 per cent of their final salary for life.

The latest development is in line with the demand of police personnel and retirees that have consistently been pushing for improved pension packages over the years.

The package also provides for gratuity payments amounting to 200 per cent of annual emoluments, a development expected to improve retirement benefits for officers substantially.

In the same vein, under the proposed arrangement, the federal government is expected to increase its pension contribution for serving police officers from the current 10 to 20 per cent monthly while employee contribution remain eight per cent.

The new arrangement, which includes a monthly pension equivalent to an officer’s last salary and increased gratuity benefits, is expected to strengthen financial security for retired personnel and boost the morale of officers still in active service.

This measure is expected to significantly improve Retirement Savings Account (RSA) balances, enhance pension payouts, and strengthen the long-term sustainability of the pension structure.

If accepted by President Bola Tinubu, the police augmentation plan for police personnel will reflect government’s recognition of the police’s critical role in maintaining national security and public order, as well as the need to ensure officers’ dignity and stability after retirement.

It would be recalled that organised labour movement has consistently highlighted that the enhanced CPS framework offers a more sustainable and transparent alternative to both the old Defined Benefits Scheme and the uncertainties surrounding a complete exit from the contributory system.

They argued that strengthening the current pension structure and leveraging NPF Pensions Limited’s institutional experience would better guarantee the long-term welfare and financial security of serving and retired police personnel.

It would also be recalled that
Police pensioners have been protesting against the Contributory Pension Scheme and they insisted that the scheme which both employers and employees to contribute monthly into Retirement Savings Accounts (RSAs) managed by Pension Fund Administrators (PFAs) has worsened their welfare.